Malaga is much more than a beach town. In 8th century, Phoenicians built a fort on the hill, now the site of the Alcazaba. In Roman times Malaga was a colony; under the Moors, Malaga was the primary port for the kingdom of Granada. Picasso was born in Malaga, and the city is still a big port for Spain. For kids, Malaga has one of our favorite castles, the 14th century Castillo de Gibralfaro.
Here's our own Travel for Kids hand-picked list of family hotels, all styles and price ranges, convenient to fun things to do with kids in: